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The Ict Mentorship Core Thread by Trader Theory

The document discusses key concepts in institutional order flow trading, including the four defining elements of a trade setup: expansion, retracement, reversal, and consolidation. It also covers orderblocks, fair value gaps, liquidity voids, liquidity pools, and equilibrium. The document provides examples and explanations of these concepts to help new traders understand the market efficiency paradigm and look for trading opportunities.

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Mohammed alharbi
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350 views35 pages

The Ict Mentorship Core Thread by Trader Theory

The document discusses key concepts in institutional order flow trading, including the four defining elements of a trade setup: expansion, retracement, reversal, and consolidation. It also covers orderblocks, fair value gaps, liquidity voids, liquidity pools, and equilibrium. The document provides examples and explanations of these concepts to help new traders understand the market efficiency paradigm and look for trading opportunities.

Uploaded by

Mohammed alharbi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Trader Theory

@Trader_Theory

27 Tweets • 2022-09-28 •  See on


rattibha.com 

The ICT Mentorship Core Content Month 1


Summarized:
The four defining elements of a trade setup are:

1. Expansion
2. Retracement
3. Reversal
4. Consolidation

The specific reference points in institutional order flow


are:

1. Orderblocks
2. Fair Value Gaps & Liquidity Voids
3. Liquidity Pools
4. Equilibrium

Understanding these two ideas will give you a greater


understanding of the market efficiency paradigm:

The market efficiency paradigm describes how "smart


money" interprets price and influences speculative,
uninformed money.
The Interbank Price Delivery Algorithm (IPDA) also
known as the ‘algo’ is an AI that delivers prices.

It is very efficient for markets to be made this way.

The markets are not ‘free’ and are manipulated


especially in the Forex market.
The True Day Daily Range:

IPDA defines the daily range between 12:00 am New


York Time & 3:00 pm New York Time.

The period outside this specific range is referred to as


“dead time”.
The general daily range structure of how the markets
move is as follows:

Price Equilibrium

Manipulation

Expansion

Reversal

Retracement

Consolidation
Expansion:

Expansion is where price moves quickly from a level


of Equilibrium.

When price moves quickly from an area this shows a


willingness of the Market Makers to show their hand.

In this case, we look for Orderblocks at or near


Equilibrium.
Retracement:

When the price moves back inside the recently


created price range.

When price returns inside the recent price range this


indicates the Market Makers want to reprice to levels
inefficiently traded.

In this case, we look for Fair Value Gaps and Liquidity


Voids.
Reversal:

When price moves in the opposite direction that IPDA


has been allowing.

When price has a reversal it indicates that Smart


Money have ran liquidity and a large move should
unfold in a new direction.

Look for Liquidity Pools above an old high or below an


old low.
Consolidation:

Consolidation is when price moves in a range and


shows no movement higher or lower.

When price consolidates it indicates Market Makers


want to hold the price and build in orders on both
sides of the market.

Look for the impulse price swing from the Equilibrium.


What new traders should focus on right now:

Old Highs - Buy Stops or Buy Side Open Float


Old Lows - Sell Stops or Sell Side Open Float
Clean Highs - Liquidity Pool of Buy Stops
Clean Lows - Liquidity Pool of Sell Stops
Sharp Runs In Price - Liquidity Voids
Swing High - Three candle pattern. The up candle.
Swing Low - Three candle pattern. The down
candle.
Equilibrium vs. Discount:

After a market makes a run higher and begins to


retrace lower, look for a drop below 50% of the price
run.

A drop below 50% indicates a discounted price.

This frames ideal buy setups.


Equilibrium vs. Premium

After a market runs lower and begins to retrace higher,


look for a rise above the 50% level of the price run
lower.

A rise above 50% indicates that the price is now at a


premium.

Framing ideal sell setups.


Liquidity Void:

After a sharp run in price, the largest candles that form


at the last are efficiently traded.

Sudden runs in price will leave gaps in price action


that tend to fill later on.

This is described as a void of market liquidity or a


Liquidity Void.
Fair Valuation:

When the price trades back inside its current range


and returns to the levels it moved from, this is Fair
Valuation.

These are good locations to take profits on positions


and do not require moving outside the current range.
Fair Value Gap:

When price leaves a level and only has a small


section of price action in one direction, this is known
as a Fair Value Gap.

They can be objectives for profits or new setups,


depending on the market environment.
Low Resistance Liquidity Run:

When the price has little Resistance on its way


running to an area of Liquidity.

This is classically seen just under an old high or above


an old low.

Price will move quickly normally on the release of an


economic news release.
Market Protraction

At specific times of day, a sudden move happens in


the opposite to the daily range direction.

This is known as Market Protraction or “Judas Swing”.

It is a micro expansion in price-seeking liquidity before


reversing.
Conclusion:

The first month of the 12-month ICT Core Content was


designed to introduce the foundation of ICT’s price
action analysis.

Take Away:

Do not fear missing setups or trades.

They form daily for the institutional mindset trader.

Credit:

Here you can watch this month's module for free on


ICTs YouTube

Original creator @I_Am_The_ICT

Graphics @daytradingrauf

https://www.youtube.com/watch?v=0LhteuLV
uDU&list=PLVgHx4Z63paYzh3KwUFX0UHQUf31CA

EXk

@I_Am_The_ICT @daytradingrauf Copy my winning


trades!

Earn while you learn or get a second income.

Copy exactly what I’m doing in the markets.

7-day free trial for all who join!

Closes 2nd of October (for real).

Message me “FREE” to join!


I hope you enjoyed this thread.

If you did be sure to follow me @Trader_Theory for:

- Educational content
- Trading psychology tips
- Trading quotes
- And much more

@I_Am_The_ICT @daytradingrauf I've DM'd too


many people in 24 hours so Twitter has blocked that
action.

I will get around to everyone but if you REALLY want


to get in either click the link in my profile or message
me on Telegram "FREE"

https://t.me/CoinCyberpunk

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